I have accumulated a good amount of credit card debt. I made my choices and I have to deal with them. I do not use the card to make any purchases anymore but I seem to be making very little progress while paying over the minimum. I have heard about consolidating through another financial institution with a fixed interest rate. Does anybody have any advice on which one or have some insight on the process? It seems to good to be true which is why I’m asking this sub. Especially with the interest rates I’ve seen floating around.
Credit card consolidation
byu/pipperthedipper inMilitaryFinance
Posted by pipperthedipper
1 Comment
**It’s hard to know what a good move would be without knowing more information.** How much credit card debt is “a good amount?” What’s the interest rate you’re paying on the credit card debt? What’s your credit rating? What’s your income/spending look like? Do you have any savings or assets you could sell or borrow against?
Attacking your question blind, here are some options that might apply for you:
1. A balance transfer card can work for maybe 15 months or so, but you need good credit to apply for one.
2. You could try to get a loan from a bank or credit union.
3. You could talk with your leadership and see if they can help you through your service’s emergency relief fund.
4. You could borrow against your house, if you own one. HELOC or a mortgage could work, though this also depends on your credit score.
5. You could borrow from your TSP or withdraw your contributions from your Roth TSP or Roth IRA, if you have any of those.
6. If the credit card pre-dates your service, you could contact JAG and try to get your credit card company to lower your interest rate via SCRA.
7. You could try to get a personal loan from adult family members, or get them to co-sign one of the above-option loans with you.
8. You could file for bankruptcy if you truly can’t repay your debt.
9. You could cut all nonessential spending, sell all nonessential stuff, pick up a side job or two, and, well, pay it off.
10. You could do combinations of the above.